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6/5/2014

Styron To Exit Commodity PC Resin Business

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Specialty PC compounds and blends in North America is Styron's new focus.

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Plans are underway by Styron LLC., Berwyn, Penn., to stop selling in North America commodity PC resin grades, used in applications such as sheet, optical media and bulk extrusion by year’s end. The company plans to focus on continuing to supply higher-margin PC compounds and blends for medical devices, lighting, electrical, consumer electronics and automotive, which are toll-produced by PolyOne Corp., Cleveland.

Stryron will end its PC contract manufacturing agreement with Dow Chemical, Midland, Mich., from which the company was spun off in 2011 and acquired by private equity firm Bain Capital. According to a company source, Styron is introducing a new sourcing strategy in North America to ensure a continuing supply of higher quality PC for its downstream businesses. Included are internal sources in Stade, Germany and its SSPC joint venture in Japan, as well as via supply contracts with other PC producers—namely Bayer and SABIC Innovative Plastics. Styron plans to continue supplying natural PC for commodity markets and compounds and blends for specialty markets in Europe and Asia. 

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